The Effect of Stock Price in M&A Announcement of Taiwan's Public-Listed Companies

• Main Authors: Chen, Chi-hsien, 陳琦
• Other Authors: Chan, Chin-Horng
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/57799883876013677433

碩士 === 長庚大學 === 企業管理研究所 === 92 === This study investigates that the effect of stock price in M&A announcement of Taiwan’s public-listed companies. The sample includes 159 M&A announcements of acquiring firms from 1985 to 2002 , and we use event-study method to measure the abnormal returns. We try to find some factors to explain the abnormal returns in our study, such as the changes in the legal environment、the insider ownership and the institutional ownership of the acquiring firms and the electrical industry and non electrical industry. The Garch(p,q) model will be used to measure the abnormal returns in our study when the Garch effect are found in our sample. The conclusion are as follows: Before 1999’s changes in legal environment, the acquiring firms have significant positive CAR.After 1999’s changes in legal environment, the CAR of the acquiring firms are not significant. The proportion of M&A Announcements before 1999 is significant more than after 1999. As for the insider ownership, the CAR in the acquiring firms have lower insider ownership is more than in the acquiring firms have higher insider ownership. And the CAR in the acquiring firms have lower institution ownership is significant more than in the acquiring firms have higher institution ownership. The electrical acquiring firms have negative CAR, but the non-electrical acquiring firms have positive CAR.